NewsFlashUS PVC settles up 2 cents/lb for Oct

24 October 2007 23:20  [Source: ICIS news]

HOUSTON (ICIS news)--US polyvinyl chloride (PVC) contract prices settled up 2 cents/lb ($44/tonne) for October, due to rising feedstock costs, buyers said on Wednesday.

Although demand for PVC has declined steadily in October due to a seasonal slowdown in the downstream construction sector, producers insisted on the hike in order to regain profit margins lost to rising prices of feedstock ethylene, buyers said.

The increase pushed US PVC contract prices into the 54-56 cents/lb range for pipe-grade resin and 58-60 cents/lb for general-purpose grade.

“With ethylene prices rising like they are, it was only a matter of time before PVC prices increased too,” one buyer said.

September ethylene contracts settled up 3 cents/lb from August, and ethylene producers have nominated a 5-6 cents/lb price increase for October contracts.

PVC producers said the ethylene price trend made it absolutely necessary to push the proposed 2 cents/lb October price hike through in its entirety. PVC is made from roughly equal parts of ethylene and chlorine.

This week, PVC producers nominated a 6 cents/lb price increase for November contracts, but buyers said the market could not bear another increase of more than 3 cents/lb.

By: Greg Holt
+1 713 525 2653

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